5 Ways Blockchain Technology is Transforming Data Analytics

From supply chain management to healthcare, it’s fair to say that Blockchain technology has changed the business landscape across several industries.

Indeed, its impact has been so strong that it has even solved some of the biggest issues that the field of data analytics has been facing.

Subsequently, quicker than the blink of an eye, Blockchain has the power to distribute 100% open information to members who have been granted special access to an unchangeable ledger. This enables organisations to make smarter, more educated decisions faster.

But how has it done that?

Here are five ways Blockchain Technology has transformed data analytics.

5 Ways Blockchain Technology is Transforming Data Analytics

What is Blockchain Technology?

Blockchain technology first gained widespread prominence when the cryptocurrency Bitcoin was launched in 2009. Since then, several other cryptos, including Tether, Dogecoin and Ethereum, have been launched, all utilising blockchain technology.

At its very essence, a blockchain is a distributed ledger which is both transparent and accessible to all. At the same time, it is secure against manipulation. For these reasons, it is seen as a reliable way of recording economic transactions. 

Some financial experts have favourably compared the impact of the launch of blockchain technology to the innovation of double-entry accounting, as it heralds a new era of improved security and certainty in all transactions.

Essentially, Blockchain technology has two predominant forms – public and private. A public blockchain can be accessed by any internet user and enables all connected nodes to view transactions and information without required special permissions. Most cryptocurrencies come under this jurisdiction and provide access to transaction data that is unrestricted.

By contrast, a private blockchain comprises a closed network that can only be utilised by authorised users. 

What is Data Analytics?

The fascinating field of data analytics revolves around analysing (often large amounts of) data to uncover specific patterns and trends. This enables businesses to make educated, risk-assessed decisions to help them meet their core objectives. It requires advanced techniques such as machine learning to evaluate unstructured and structured data.

Given how important data science is in improving the overall performance of companies in a wide range of sectors, studying analytics at an institution like UNSW has become a very popular degree option.

How has Blockchain Impacted Data Science?

Both blockchain and data science centre around data. However, when they are combined, they add a powerful new level of functionality to the way data is handled.

Here are five ways Blockchain is transforming data analytics.

1. Facilitates Real-Time Analysis

Ordinarily, it is very difficult to analyse data in real-time. However, blockchain technology allows businesses to do this in an efficient way that also helps to identify anomalies at a very early stage.

Additionally, blockchain allows multiple people to work concurrently on the same kind of data, in a similar way to an Excel spreadsheet, where one or more users can make changes in real-time that can be assessed and modified by others.

2. Ensures More Accurate Data

Blockchain data is stored in either public or private and public nodes. 

Before any data is added to a block, it is evaluated and double-checked at its entry point. Effectively, this is a data verification process that ensures the data is even more accurate.

3. Allows for Data Traceability

As blockchain facilitates peer-to-peer relationships, it means that should one account be unable to explain a published methodology, it can be evaluated by the other peer, who in turn can trace the data from its beginning to the end to identify how the results were achieved.

As blockchain allows the user to trace data through ledger transparent channels from the starting point until the end, the user gains a firmer understanding of what data is the most reliable and how you should go about storing and updating it.

4. Ensures data sharing is easier and smoother

For any organisation, an easy and smooth flow of data is what makes it function most efficiently.

Blockchain technology does this as it can be very easily accessed or transferred in real-time without restriction, which goes a long way towards streamlining the admin process. 

5. Strengthens Data Integrity

Previously, organisations faced the challenge of improving data capacity in a way that was not prone to inaccuracies, duplication or errors.

Blockchain technology has solved this issue by ensuring the data is authenticated at every block of the chain.

Subsequently, an increasing number of organisations are embracing blockchain because of its advanced security. 

Data is cross-checked and verified at every block, and access is denied if signatures do not match. As a result, the potential for leaks or data hacking and leaks is significantly reduced.